Mortgage foreclosure surplus

C.R.S. § 38-38-111 governs distribution of a public-trustee foreclosure overbid: eligible junior lienors in recording priority, then the borrower or person entitled to the remainder. The Colorado Public Trustee Act, §§ 38-38-100.3 et seq., supplies the sale and junior-lien redemption procedures. HB 26-1098 amended § 38-38-111 effective July 1, 2026. An entitled person may claim a remaining public-trustee overbid while the trustee holds it in escrow for two years from sale under amended § 38-38-111(3). An overbid of at least $25 remaining unclaimed then is transferred to the state unclaimed-property process or held under an applicable county resolution. Junior-lien redemption deadlines under § 38-38-302 are different from the owner’s overbid claim.

Tax sale surplus

C.R.S. Title 39, Article 11.5 governs the public auction preceding a treasurer’s deed. SB 26-144 repealed and reenacted Article 11.5, effective June 1, 2026 for treasurer’s deeds issued on or after that date. New §§ 39-11.5-112 and 39-11.5-303 govern overbid distribution and claims, superseding the page’s description of the 2024 version. A qualifying junior lienor must file an overbid claim with the treasurer within eight business days after the public auction (§ 39-11.5-303(1)(c)). The treasurer pays eligible lienors in priority order and the balance to the owner between the ninth and fifteenth business days (§ 39-11.5-303(3)). Unclaimed owner overbids of at least $25 remain in escrow for two years from auction before transfer to state unclaimed property; smaller unclaimed balances transfer to the county after six months (§ 39-11.5-112(3)).

Unclaimed funds

Colorado Revised Uniform Unclaimed Property Act, C.R.S. §§ 38-13-101 et seq.; initial owner claims are governed by § 38-13-903 and determination by § 38-13-904. Section 38-13-903 states no fixed deadline for an owner to file an initial claim with the state administrator. Under § 38-13-904, the administrator must allow or deny a filed claim within 90 days. The two-year holding period for a foreclosure or tax-auction overbid is the local custodian’s transfer point, not a bar to a later state claim.

Fee and practice notes

Mortgage foreclosure surplus: a waiting period of 2 1/2 years before you may assist, with fees reported as capped at 20%; after 3 years, up to 30% (see HB16-1090).

Statute text

Links to the statutes referenced in our research. These may be third-party copies of older code editions, so check the current official code before relying on them.

• Mortgage foreclosure statute